Trump to sit down with major automakers to discuss fuel efficiency standards

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U.S. Trade Representative Robert Lighthizer, Transportation Secretary Elaine Chao, White House economic adviser Larry Kudlow, Environmental Protection Agency chief Scott Pruitt and White House aide Chris Liddell are among the administration officials scheduled to attend the session, which is expected to last an hour.

Mitch Bainwol, who heads the Alliance of Automobile Manufacturers, told a U.S. House committee on Tuesday the industry supports “standards that increase year over year that also are consistent with marketplace realities.”

Bainwol said the industry remains hopeful that there will be a “negotiation” between the White House, California and the auto industry.

Automakers may also use the Trump meeting to raise proposed controversial changes to the North American Free Trade Agreement, officials said.

Trump is likely to also raise an idea — first reported in early April — about requiring imported automobiles to meet stricter environmental standards, the administration official said.

Automakers plan to argue that Trump should view California as a flawed trade deal and he should help them get a better deal, two auto officials said.

The industry also notes it faces rising fuel efficiency standards around the globe and is spending billions of dollars to introduce new battery electric vehicles in the coming years.

The Transportation Department proposal also asserts that a 1975 federal law preempts states from imposing emissions rules, even though California has received numerous waivers under the Clean Air Act to set emissions rules.

Democrats and environmental advocates plan to aggressively challenge the Trump administration’s plans to weaken the vehicle rules touted by the previous Obama administration as one of its biggest climate actions.

The Trump administration plans to argue the weaker rules will lead to cheaper vehicles, boost sales and employment and improve safety by prodding faster turnover of older vehicles.

The Obama rules adopted in 2012 sought to double average fleet-wide vehicle fuel efficiency to about 50 miles (80 km) per gallon by 2025, but included an evaluation due by April 2018 to determine if the rules were appropriate.

Unlike many other Trump meetings with business leaders, Friday’s meeting will be closed to the media.



Source : CNBC